Greater Manchester Centre for Voluntary Organisation (GMCVO) has appointed administrators after concluding that its business model was no longer viable.
GMCVO appointed Emma Mifsud and Charles Turner from legal firm Opus Restructuring on 27 November.
They are undertaking a review of GMCVO’s activities and could potentially “rescue at least some elements” of the organisation by transferring them to other partners.
GMCVO, one of the largest local infrastructure organisations in the UK, has five wholly owned subsidiary companies.
Three of these companies manage social investment funds, one oversees consultancy and research contracts while the other looks after a conference centre and tenancies.
St. Thomas Centre, which managed GMCVO’s conference centre and tenancies, is closed to the public as the joint administrators carry out negotiations, though it will remain open to tenants and events delegates who have permission to enter the centre.
Recent plans for ‘significant losses’
According to its latest accounts for the financial year ending in March 2023, GMCVO had a total income of £3.32m while its expenditure was £3.65m.
This compares to the 2021-22 financial year when its total income was £3.79m and its expenditure was £3.55m.
In its latest accounts, GMCVO stated: “The financial year of 23-24 is likely to see significant losses as we invest in systems and transition to new activities and forms of income.
“We expect GMCVO to be a smaller organisation.
“Our reserves policy will need some adjustment in relation to both of these issues, but it is likely that we are unlikely to be carrying much additional capacity in terms of unrestricted reserves into 24-25 that will enable the organisation to manage unanticipated risks.
“As a result, increased levels of cost control and governance scrutiny of finances will be essential.”
Civil Society has asked GMCVO and Opus Restructuring for further comment.
